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tv   Street Signs  CNBC  May 2, 2012 2:00pm-3:00pm EDT

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thought behind it. >> my worry is that sometimes you follow all the best advice and you still don't get ahead. if you invested ten years ago, you're not up the way you might have been. that will do it for "power lunch." >> see you back at the ranch, ty. "street signs" begins right now. have a great afternoon, everybody. hi there everybody. two hours left in the trading day, we've got the big money in botox, bedbugs and man bags. all the major market movers as well. "street signs" begins right now. well, the markets are mixed as we speak, but well off session lows. the dow had been down as many as 87 points after finishing yesterday at a nearly four and a half year high with the s&p 500 down for the second time in three days and the nasdaq, however, is now moving higher after wiping out an early 21-point deficit. tracking today's new highs you've got nike -- you've got
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nike trading at an all-time high level very heavy volume. also cvs caremark up by 2.7%. american eagle is up by 14.8%. incredible that a three-year high. in the meantime, to the downside the pain is continuing for radio shack and also first solar. both of those hitting all-time lows. and office depot, ticker odp, down about 5%. multiple price target cuts. those are three of the big names on our radar at this hour. you have two tight ends and a cautionary tale about why everyday products don't always make the best investments. first of all, let's take kraft. one of the only dow components in the green today as it nears a 10-year high. then you've got at&t flat today but up huge year-to-date. so proceeding with caution with that one. and also stopped at the red light is open table getting crushed after guiding lower for the second quarter. so why don't we kick it off with number one. we've got kraft here, how much
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longer can the mac and cheese run continue? erin, i want to know, would you be buying the stock at these levels? >> in our opinion, kraft is slightly undervalued right now, but we'd wait for a larger margin of safety. >> what do you think will give you that larger margin of safety? >> you know, i think there are some headwinds that kraft is facing right now. obviously commodity costs continue to challenge firms throughout the consumer product space. and consumer spending still remains constrained especially for the low and middle income consumer. and europe is a challenging market. and europe is a challenging market -- >> but i thought that kraft was benefitting from those consumers staying at home more because there is uncertain economic environment and therefore they buy more products, kraft products, obviously. and then bring them back at home. >> oh, absolutely. kraft has been benefitting from their investments behind marketing support and product innovation. but the competitive environment is very intense. and kraft faces competition from
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not only other branded players, but also from lower priced private label offerings. those are -- those could challenge kraft's potential to win at the shelf. >> erin, who do you feel is their biggest competitor at this stage? >> obviously there's a lot of titans that compete in that space. nestle is obviously a large player. general mills, heinz, campbell soup, those are players they'll compete against and are vying for consumers' discretionary dollars. >> erin, thank you very much for that on kraft. let's move onto at&t. that stock is trading at a four-year high going back to july 23, 2008, when shares closed at 33.06. do investors care that these dow components are surging so much? joining us now is chris king, principle and tell kom analyst at stifel nicklaus. great to have you on the show. you raised the price target to $34. what's going to get it to $34? >> hi, good afternoon.
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well, first of all i think you obviously have to look at the broader equity markets and at&t being one of the major bellwetters of the market in terms of market capitalization in terms of influence on the broader economy, capital expenditure budget that it has. but it's obviously benefits from a benign interest rate environment as well with a strong dividend and free cash flow yield. >> and really glad that you actually raised the issue of a strong dividend because this is one of the things that people buy at&t for. would you buy it also for the capital appreciation or just the dividend? >> i think certainly some minor capital appreciation is to be expected from these levels. it has executed very well, obviously, following last year in its failed attempt to buy t-mobile. it's generally led the wireless industry in terms of total subscriber net additions. verizon beat by a razor thin margin last quarter. generally speaking, the company
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has continued to execute extremely well. there is some hope for growth in the wire line segment over the course of the next year or two particularly if you've got some increases in general employment levels and the employment picture begins to look a little stronger globally. >> okay, chris, thanks very much for that. now we move onto open table. that's down about 14% today and nearly 70% over the last year. is this a case of what herb says good companies don't always make good stocks? with us is jason health stooen, oppenheimer senior internet analyst. jason, why would you own this stock? >> we have a perform rating on it. we did down weight it last quarter after earnings. so ahead of this recent up in the stock. again, great example, they have a great product. we think it's a natural monopoly what they do with providing this one-stop shop for consumers to find reservations. the reality is the company is going through growing pains right now, that's what investors are worried about. >> how is it going to get
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through the growing pain? how and when will things pick up? >> we're seeing u.s. diners grew 38% -- i'm sorry, 33%. that was down from fourth quarter's 38%. so 33% is still very strong, however, guidance is assuming no improvement. and investors in the internet space pay for growth. secondly the company cited, there's really two ways they can move the u.s. ahead. one is to improve conversions on the website. the second is to launch more functions on applications on apple and android. however they're spending internal resources on i.t. to build out their business in london. and that's consuming the majority of their i.t. resources. and there's a question right now to some extent can the company walk and chew gum. investors are worried, but they're ultimately going to have to spend more money, hire more people and dlutive to margins. >> is there anyone else in this space doing it better you would rather go for? >> this is the only pure play on
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the restaurant side. you do have companies like yelp who offer reviews of businesses and local restaurants are there. that's a stock also very expensive. really, if investors are looking to play the restaurant space publicly, this is it. you know, you just have to be a long-term investor to participate in this because really this is about a 2013 story, not really a 2012 story anymore. >> got to be patient. i see you have a price tag at $46, which is a reduction down from $54. jason, thank you very much for your time today. >> sure. >> bob pisani, you're down on the floor. what's on your radar right now? >> well, important thing is when you get german manufacturing numbers that are weak and the adp numbers, you get concerns about slowing global growth. that means material stocks and energy stocks are all weaker. marathon with a disappointing earnings report. conoco, cabot oil to the
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downside. i'm worried about the effect chesapeake is having on the entire energy complex. it's not just what's going on with the ceo. the company's got very complex structures, a lot of stuff going on. they piled on a lot of debt. i'm worried it's starting to affect investors' willingness to invest in the energy sector in general. i'll keep an eye on that and let you know. four-year highs on the dow with this uncertain economic environment shows you people just don't know where to put money right now. even stocks as uncertain as they are at least represent some kind of potential return, mandy. >> bob pisani, thank you very much. the dow has had a heck of a run to new four-year highs this week. so what's your buy signal? and what are you buying? that is our twitter question today. you can send your thoughts in to streetsigns.cnbc. we'll reveal your answers later on in the show. in the meantime, we're just getting warmed up here on "street signs." we've got on deck for you botox nation. we're going to spend more than $1 billion a year on allagan's top seller. why are their fine lines all
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over the stock? we'll have an exclusive chat with the ceo. and big money in bedbugs. one stock to an all-time high. and retail therapy, hide your credit cards, ladies. your man could be outshopping you. we're going to go inside the numbers with courtney reagan. do not go anywhere. we're going to be right back here on cnbc.
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shares of lululemon hitting new highs. it's been a great year for the yoga and athletic attire company. shares are now up 70% this year. someone out there is getting fit. in the meantime, stocks taking a bit of a breather after hitting fresh four-year highs yesterday. what's driving the new bullish spirit? and we're going to hit on opportunities on a market still up more than 13% over the last six months. let's ask cio of global equities of fed raeratedfederated. and paul hick ki, co-founder of spoke investment group joins us in a second. steve and rob, welcome to the show. rob, i'm going to you first to all. the market is around four-year highs. if you have not participated in this six-month rally, is it too late to get in? >> i don't think so, mandy. if you look at the p/e ratio for
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the s&p 500, it's only 14 times earnings. i find that very cheap compared to the historic average of 15.5 times earnings. so i think we're certainly not in the early stages, but it's not too late to get in. >> steve, do you agree that the market is still cheap? and if it is, what would you buy? >> i think it's cheap, mandy. near-term we have a little bit of a pullback here. i think friday may be weak with the jobs number. we think we're in a new secular bull market for equities. we think over the next couple years you could be seeing 1650 on the market. we have a target of 1450 for the end of the year. in this pullback here so often we certainly would be buying cyclicals, materials mentioned earlier on the show getting hit hard. industrials, those areas have lagged this year and those are areas we particularly like in the u.s. >> okay. so steve says 1450 target for s&p by the end of this year. two-year target 1650, do you concur?
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>> i would say by the end of this year 1500. i don't think 1650's out of the realm of possibility. >> are we going to get a breakout? it seems as if we're at four-year highs but we've been here before in recent history right? we're turning sideways a little bit. >> but the beauty is earnings have been rising so rapidly. so really you look back over the head fakes we've had in the market the last two years. >> uh-huh. >> stocks are so much cheaper now on a p/e basis. that's going to help. >> do you feel, steve, that all we need right now is for bad things not to happen and we'll still move higher? >> yeah. we just have to have uncertainty come off the board. as rob pointed out, earnings and fundamentals are actually very good. we're pushing up towards 110 eventually some time later this year maybe on earnings. but what's holding things back is uncertainty in europe from a policy perspective, even the possibility of a meltdown, which we don't think is going to happen. china, is it going to land or not? people are worried about that. and then the u.s. elections. so as we go from now to the end
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of the year, we think we get clarity or at least less uncertainty on each of those fronts. we think it's going to generally be a positive direction. and that is enough to get us a lift in stocks as earnings just keep grinding along. >> rob. >> yeah, steve. quick question for you because we seem to be in agreement on this, do you feel like with the eurozone crisis that u.s. investors are beginning to realize that european gdp -- or excuse me, european trade is only about 1% of our gdp and that's one of the reasons why we haven't seen the gyrations this year over bad euro news that we saw last year? >> that's probably understating it, rob. it's a global economy and you can look at gross and net on gdp. europe's important for sure, but i think rather we'd say that we think people are overestimating the slowdown in europe. it's going to certainly be a modest recession, but we don't think it's going to pull the world down. and we think two other engines are sort of firing here at the moment, which is really emerging
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markets. >> right. >> we like mexico, we like brazil, we like china. and we like the u.s. so we think there's enough engines here. and we think europe's going to be weak but not a disaster. >> that's the macro picture. let's make it micro. let's make some money. you've come along with two picks. each real quick. what do you have, rob? >> i like industrials. and certainly a name there would be dannahe, and financials above of new york mellon. >> steve, your picks? >> cleveland cliff, materials or caterpillar and fed ex. >> spoke investment group out with a report that highlights triple plays, companies that have beat on earnings, revenue and upped guidance. paul is here with that. paul, how many are on the list? >> there's over 50 this quarter. part of that is due to the fact that estimates were so low coming into this quarter. so that helped companies beat earnings and revenues forecasts. but now we're seeing better
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guidance to some degree. it's not great. not like we've seen in prior quarters earlier during the bull market, but better than the last couple of quarters. so what we do is track these triple plays on a regular basis. for investors really looking for stocks with strong fundamental growth and relative to expectations as well, this is a list that you want to watch. and we tend to focus on names that also have strong technicals to compliment the fundamentals. >> that's what we want. positive fundamentals and technical. you've got five names in particular here. let's very quickly look at them. abbott labs. >> yeah. it's been doing really well. on the catalyst they're going to split the company up into two, the pharmaceutical and medical device business and nutrition s nutritionals. you'll have a high dividend payer and a higher growth company to boot. it pays right now over 3% yield. so i think on that upcoming catalyst and the company's been performing well, it's a good relatively safe bet as well.
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it's in the health care sector defensive play. >> one thing i know for 2016 to watch out for for abbott labs is humira going off patent. >> that will be after the split-up and that's a ways out. >> absolutely. the other is e kwi fax. why do you like this one? >> well, it is mature. but we want to focus on u.s. companies. what your prior guests were saying emerging markets, equifax is moving into the business. any time you apply for a credit card, refinance your mortgage or anything that regards your finances, there's a credit check. and that rings the register of one of the credit rating agencies. and they have an og oply. >> this is an interesting one. mattress firm, up 75% already this year. you still reckon it's got room to run? >> it was an ipo last year. they're the second large estimate resz retailer in the country. they're growing.
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tempur-ped tempur-pedic's numbers, the stock got killed because of competition from private label memory foam mattress companies. and mattress firm is one of the companies, they have their own private label that's probably taking share from tempur-pedic. >> i'm afraid we haven't got time to go through all of the other ones. i want to mention, paul, before we let you go, quick update on the stock draft, guess what? you're in the lead. jc penney call, the first pick as of now, a long way to go. >> a long way to go. >> it's still basically flat since the stock draft which was last thursday. but everyone else, paul, is in the negative so far. >> hasn't been a very strong draft for the seven pickers so far. >> no. we've got nearly a year to go though. paul, thanks a lot. you can all check up on the stocks that were drafted by our all-star traders. you can go to streetsigns.cnbc.com. we have some breaking news on a young gun getting out of the investment bank. >> few more details on john arnold who has announced he
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plans to retire and close his flagship fund. he said in a letter to investors, i'm writing to inform you i've decided to close the fund. he basically says he's proud of the fund's progress coming out of enron which of course closed down. he says after 17 years of doing this, i feel it's time to pursue other interests. we're hearing he may devote himself to philanthropic causes. they manage $3 billion to $4 billion. they've had a very successful track record. on one down year in their ten years of trading which was 2010. last year they returned 7%, which was pretty good in the environment. but we're seeing a lot of pairing in the commodity trading space, mandy. a lot of people are going in different directions. one in london closed earlier this year or in the process of doing that. in the broader sense, you saw stanley drunken miller a couple years ago. it seems to be a period in that
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industry. >> it sure does. thank you very much for the breaking news, kate kelly. i know you're on that story. in the meantime, we're going for a break. after that, hello kitty joins the mile high club. and how a dark and creepy side of life is actually proving to be big for one stock in particular. and speaking of filthy rich, an all new episode of "american greed" premiers tonight at 9:00 p.m. the return of long island's madoff and plan to scheme investors out of millions. "street signs" back after this. how math and science kind of makes the world work. in high school, i had a physics teacher by the name of mr. davies. he made physics more than theoretical, he made it real for me. we built a guitar, we did things with electronics and mother boards. that's where the interest in engineering came from. so now, as an engineer, i have a career that speaks to that passion. thank you, mr. davies.
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filthy rich and a filthy world. check out shares of chemical maker fmc. the company makes everything from pesticides to bedbug killers. and the stock has been really cleaning up. in fact, it's been hitting new all-time highs. joining me now is chairman and ceo of fmc corp. great to have you on the show today, pierre. being a bedbug killer grabs the headlin headlines, but at the end of the day it's pesticides growing your growth here. >> that's right. pesticide, herbicide, we're also in food products and pharmaceutical products. and we actually supplier of
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lithium. a very growing product for electric vehicles. >> absolutely. i would imagine when you talk about agriculture products like pesticides, a lot of that growth is coming from emerging markets. >> by far the largest market is north america. we are very large in brazil. i don't know if you've seen the last earning release, we had a 38% growth in latin america mostly on the back of our agricultural business. >> you have a fantastic new nifty product that lures in bedbugs. in this filthy world we live in, my question is is there always going to be a healthy supply of bedbugs to keep demand going for you? >> we launched the product in the next couple of weeks. and we have great expectation. we don't exactly know what it's going to do because there has never been such a product on the market. but we believe it's going to be a very cool product and great growth. >> none of your competitors is doing anything like this is what you're saying? >> first time. there's not such a thing on the market today. it's the first time a bedbug
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product been on the market. >> i mentioned with regards to your stock that you've been hitting all-time highs recently. but you're also buying your own stock. what should investors read into, pierre? >> i think the stock has a very high potential for full growth. we've been -- the stock has been growing on the back of earning growth if you look 2009 to today we grew earnings by more than 30%. yesterday we announced growth year on year 30%. there's potential for growth. >> really quick ten seconds, you have a pesticide called toxic, banned here and the uk. do you think you're going to get the ban lifted? >> we don't know. it's a very big product in every other country of the world and very critical product in asia. >> is it safe? >> it's completely safe. and approved for all applications, yes. >> keep our eye on that. thank you so much for joining us
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today, pierre. >> thank you very much. >> coming up next on "street signs," herb is back with a vengeance. and he's got one stock that he's kicking himself over. there's also still time to get in our street tweet of the day with the dow hovering near four-year highs, what's your buy signal? and what are you buying? send your thoughts. a quick halftime break when "street signs" is back with you. like in a special ops mission? you'd spot movement, gather intelligence
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nchtsz welcome. welcome back everybody. with all the stories the street is talking about now, first up is target planning to stop selling amazon's kindle devices back in january. target confirmed it was testing apple stores within a store format in 25 locations. we brought that story to you. in fact, amazon shares flat on the news. elsewhere, garmin navigating a pop, ticker grmn, up about 4%. the gps device maker beating estimates and a big beat in the revenue department. the big seller last quarter was their fitness products. and how about some housing hopium? always want housing hopium. home builders, by the way, they're riding the wave.
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they've been riding it for some time, lennar and d.r. horton trading at levels not seen since back in 2007. and herbalife, its stock is continuing to struggle after yesterday's 20% plunge. now, herb first raised the warning flags on cnbc about two months ago. and since then he's been traveling the country, he's been interviewing former distri eer s and he's come back here to the cnbc mother ship with another inside scoop, herb, some might affect investor perception on this story. >> this is an interesting twist to the tale. one of the critics of herbalife was convicted felon of zzz. he had become a fraud ster going after what he claimed were other frauds. among his targets was herbalife which responded by saying at the time stands behind the company's integrity. then out of the blue all of minkow's criticisms disappeared
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from his website and he never talked about herbalife again. what caused him to shut up? according to a deposition of somebody he worked with herbalife paid him a settlement of $300,000. he's now in prison after pleading guilty to conspireing to manipulate the stock of the home builder lennar, another one of his targets. why would herbalife pay a convicted felon? they told me just about 11 minutes ago, he's a convicted felon back in prison for spreading misinformation to profit through short selling. as we have told the press before, we settled with him to avoid the time, expense and distraction of protracted litigation. today, however, we are totally committed to using every resource to defend against any misrepresentation by short sellers, their accomplices and their associates. >> if i have herbalife stock, what should i do right now? what are the analysts saying are
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going to happen to the stock? >> the analysts are getting behind the stock and saying this is a great buying opportunity. and when you look out there and look at how the stock traded when it fell just 20% by question, it suggested the institutional investors who own it sort of own it with less conviction. >> and of course the person who asked the question was maybe someone with an outsized influence over the market. i think as the point was made if someone else asked the question, would there have been that much of an impact on the stock? >> that's a great point. but remember david einhorn was just asking a question. he asked several questions. and for a stock to fall -- and all for somebody to ask a question and see a stock fall? that's fairly unusual. >> great reporting. i know you're all over this story. thank you very much, herb. fine lines all over allergan today. the botox maker down about 4% after missing estimates and cutting the outlook for next quarter of botox sales now more than $1 billion a year. that's a lot of wrinkles, isn't
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it? so is the botox boom about po bust? let's bring in david pyott. good of you to join us today. i would like to know how much botox is an economic indicator. in other words, how have sales of botox and other fillers and cosmetic procedures like that held up in an economy where essentially you don't need to go out and get these things. it's very discretionary. >> good. yeah. delighted. thanks for having me on the show. actually, everything in the consumer cash pay business is actually looking pretty good. this morning when we announced earnings and we went through all the details, i said where we have the best numbers, of course the united states, that the botox market and its competitors in the first quarter we estimate has been growing about double digits. the same for dermal fillers. an interesting number for the community was less anesthetics up worldwide 17%.
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and that's often a leading indicator. >> how important is it nonetheless, david, to try and diversify the uses for botox. i know there's been experimentation and using it for migraine treatment and various other things. where else can you use botox and drive your growth? >> well, in the past roughly the split of botox has been half for anesthetic use, the other half for therapeutics. now therapeutics is going to pull away, not because we're predicting any slowdown in anesthetic use, but even sharper growth due to a whole slew of recent approvals. first of all, chronic migraine. the u.s. and the uk were the first two countries in the world to approve this indication up to 42 country approvals. and then very recently we also got an approval for neurogeneralic overactive bladder. what does that mean? severe incontinence associated
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with spinal cord industry. we're in full launch mode of that as well. >> david, real quick, you've also got lap band surgery for obesity. i know this is a growing area, nonetheless, at this stage anyway, a lot of people who get that surgery have to pay either part of all of the costs themselves. how do you overcome that challenge? >> well, that's the biggest thing we're addressing. lap band is still unfortunately declining this year. 15%. we've thrown our complete resources of the company behind improving access for patients. so not only getting policy coverage with insurance payers, but also what should that co-pay be? there we have some powerful arguments because we can show from health economic data published last year, the payback for patients that are heavier than 35 body mass index, people who are really, really heavy and
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have type 2 diabetes is less than three years on the complete cost of the surgery including the acquisition of the lap band. >> thank you so much for joining us today. david pyott. >> thank you. >> we're also tracking a big drop today for nat gas. it's down about 5%. we've got it right here on the board sitting at 2.25. let's find out more what's driven the move to the downside in nat gas. sharon, what's going on? >> well, we did see a steady slide in natural gas futures pretty much all day. and at 1:30 a big drop as you saw there. we fell more than 5% on the session. a lot of traders are speculating that this news that kate kelly was reporting about the legendary natural gas trader, john arnold, actually liquidating his hedge fund, his business there. that is something that really has a lot of traders wondering where his positions -- how large were they, is this a time to get out of the natural gas market as well? some speculating that has something to do with it. others pointing out the slow slide we saw also helped to bring prices to the 2.30 level, key technical support level
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breaking below there caused further selling as well perhaps. and then we're anticipating seeing an injection in natural gas supplies for the week, but much smaller than what is normal. so the five-year surplus that we've seen will be reduced somewhat. that's something else that traders are watching. >> we're keeping an eye too. thank you so much for that, sharon epperson. coming up next, who is winning the battle of the sexes at the mall? it might surprise you and which stocks stand to benefit the most. and, ouch, herb's been falling down on the job. one of the stocks he tripped up on when "street signs" returns. ♪ i'm making my money do more. i'm consolidating my assets. i'm not paying hidden fees or high commissions. i'm making the most of my money.
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i'm bill griffeth. coming up at the top of the hour on "closing bell," can a dividend hike and new marketing strategy give a pop to pepsi's shares? we have a stock brawl on pepsi coming up. plus, we're looking for opportunities. are you better off putting your money to work in equities or fixed income right now? we have an asset class debate on that. and hower raw material prices are pressuring clorox's margins.
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will the company need to forward those prices on to the consumer? we'll ask the ceo in an exclusive coming up. maria and i look forward to seeing you here from the new york stock exchange. see you then, mandy. >> indeed you will. herb is back. now for a stock you're kicking yourself over. >> oh, man. i was busy working on herbalife and you hear of a good interesting story and look at this one. take a look at ubiquity networks, a bunch of wireless networking products in its portfolio. most are sold abroad. this is a hot stock since its ipo six months ago. i got sidetracked with all this stuff, but yesterday the company came out with earnings, its outlook was only ho hum. there's some other stuff floating around. you can see it hit the stock. the issue i was looking at is a relationship with a distributor that represents nearly a quarter of its revenues. actually, they're based in miami but have domicile down in
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flytech, have a domicile in latin america. i called the owner -- the people there say they've never heard of him. >> i'm going to make you feel better here. i'm going to even things up. but green mountain, you've been really on. i mean, you were on this well before anyone was on this. >> coming out with earnings after the close. going to be a really interesting stock to watch. great quarter to watch. one thing i will point out the company said last quarter that the business is becoming too complex to forecast. >> yeah. >> to my way of thinking, that lets them say almost anything because they've basically said, you know, well, we said it was too complex to forecast. >> yeah. easy way out. >> yeah. >> thanks a lot for that, herb. >> sure. >> we are serving up a slice of sunshine. papa john's soaring up 17% on strong earnings. the pizza chain saw international same store sales jump by over 8%. and north america same store sales up just over 1%. papa john's is up more than 50% in terms of its stock over the last year.
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that's a lot of pizza. from pizza to man purses, not sure what kind of segue that is, but nonetheless men can finally be realizing the benefits of retail therapy. i'm glad they've finally come round to the benefits of retail therapy. that's helping part of the s&p retail index to new highs. in fact, guys, guys might be even outshopping women. courtney is here. seriously, court? outshopping women? >> i think it's possible. and it might even be time to then change the consumer lexicon because retailers refer to shoppers as women but turns out at least online men are outshopping women. according to to i prospect, 70% of affluent men prefer to research and buy online with more than a quarter of them making purchases weekly. and nearly half of all wealthy men research products on their mobile devices, expecting that seamless experience across all platforms, sorry, ladies, 84% of those guys are self-gifting. overall the number one most popular site for this group, amazon.
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surprisingly espn.com is number ten. when it comes to fraifrt brands, affluent men listed rolox, stiffny and company, ford and lexus also making the top ten. the growth rate of men shopping online has outpaced women for them and guys are outspending ladies by 20% to 30%. kiehl's megan grant says it's doubled that of stores online. and men are much more loyal than women. >> you brought up a number of stocks benefitting from this trend. i want to know, i mean, how can the companies better harness the power of men shopping? what are they doing to capture this audience? >> so what we've learned is if you can make these ads interactive, simple, easy for men to understand -- no offense, guys, but this is what you're telling the advertisers and the companies. the more easy they are to understand, the more interactive and the more you can show me that the product is quality, that seems to really capture
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guys' attention. nike is very good at this. so a number of companies are doing it and a number have to learn. >> from a man's perspective, i would say though there's things you have to try on. >> certainly. >> so some of what you are pointing out was hard goods opposed to soft goods. i also think regarding this growth rate, it's obvious men are just catching up. >> what about you? what are you shopping habits? do you shop or does your wife do it for you? >> mary gets me to the stores, i try on a bunch and i don't come back for six months or a year. >> you buy six months' worth. >> my wife does more of it online, but, yes, we do both. >> would you buy breast implants? we were speaking with ceo -- saying 17% pop in breast implants over the past quarter. >> i don't need that. what i need is a man zier.
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>> maybe a breast reduction. >> there you go. >> thank you, herb. thanks so much for that, courtney. coming up next, you are going to help us answer these questions. number one, what's your buy signal? and number two, very simple, what are you buying? we've got lots and lots of great responses on twitter. we're going to read some of them out. we'll bounce some ideas off the pros. do not go away. do not go away.l. with hertz gold plus rewards, you skip the counters, the lines, and the paperwork. zap. it's our fastest and easiest way to get you into your car. it's just another way you'll be traveling at the speed of hertz. tdd# 1-800-345-2550 we're hitting new highs. tdd# 1-800-345-2550 and i'm on top of it all with charles schwab. tdd# 1-800-345-2550 tdd# 1-800-345-2550 i use streetsmart edge and its tools like... tdd# 1-800-345-2550 screener plus - i can custom build my own screens
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let's take a look at some of the internals of the markets. the nyse stats up there in front internals of the market. the decliners are outpacing the decliners. you've got new highs, guys. 93 of them hitting you. new highs, new lows at 21. as for the nasdaq, 67. new lows, be 37. all of these new highs going up without making too much of a fanfare. we've been asking you this throughout the show. what is your buy signal and what are you buying? and here's what you said. trader greg said the smaller u.s. regional banks, it's the last depressed sector that is not normalized since the meltdown. greg says, water, xylem, aqua
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american. and greg says when i have extra to put in my risk. we've heard what you see as buying signals. what do the pros think? alison deans is senior adviser and bob pisani and herb greenberg is here as well. alison, let me get to you first of all. what is it going to take for the individual investors, the moms and pops and retail guys? what are they waiting for? >> i think they need to see a continuation of a good market environment, not very much volatility. volatility speaks to risk and reminds people that they can suffer from pretty dramatic losses which they did in 2008 and i think people need to feel better about what is going on
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economically and politically. >> do you think this has to do with people not relying on their house as a nest egg? they could use their house as an atm and put their money in stocks or whatever they wanted to. they cannot do that anymore. >> in the past, in 1987 and in the past when we've had market corrections, the market came back. the market came back but not in the same degree. there were other assets that they owned that continued to appreciate and i think americans no longer feel that their home is an appreciating asset. at the same time, they are worried about their nest egg and retirement savings. >> bob, what is your call on why people are waiting to buy? >> burned on stocks in 2008. burned in real estate in the same time period. they've got no other concerns or places to go with a lot of their investments and that's why the market is so high. why are the markets so high?
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why are high-yield bond funds? you're not going to get it with 0.5 in the bond funds. the baby boomers thinking that they are going to retire, they are not. >> bob, this is herb. and you hope that they do it. >> what do you think the danger is, herb? you have people saying, hang on. so-and-so next to me is making a lot of money. they get in now and the danger often with the retail investor, they get in near the top. >> that is always the concern which is why if you invest anything i've ever seen through the smartest people, it's going where people are not, not following the crowd. if you can't do that, you probably need professional help because you can't just follow in this case. >> right. >> that's where people get hurt. >> alison, you're the pro in that department. you advise people. what would you say if someone
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came to you and said, i've got $10,000. what do i do with it? >> i would say, anyone who comes through with me should invest a certain amount of money. i look through their cash flow needs and give them a sense of how they should be diversified but i think you should have equities and more concerted. >> this is herb. do you ever get concerned at this level that if you were to say, buy an index fund, that you would be chasing something that is almost -- has a higher risk component? >> you know, i -- in the '90s. i actually think with what is going on globally and the risks and different dynamics, you need active management. for as much as you are paying a higher fee, what you pay for now and it's a better way to go.
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>> that's hotly debated although the recent years, if you look at every money manager, no, they have not necessarily done well but i think you have a handful and probably at this point close to half of them doing better. it's not just any only money manager but really being thoughtful about the investment strategy and track record is very important. i always think people need to have help with them choosing managers but i think it makes a big difference. >> let me bring up something that shows more than 60% say is the time to put money into the markets. that's a big change from last december, folks, when only 46% of viewers said that. alison, what can these investors do to get back into the market? >> i think part of the reason why they think that is because the market has gone up. i hate to say that they see the market going up for a long period of time and my concern is
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that volatility is back and those numbers could trade down again. you continue to see a stable, good market and people realize that they are not earning anything. i think that could see people cautiously starting to migrate into equities. >> bob, on the floor, you're banging the table about lack of participation. what do traders feel about that or how does it affect the mark can ket? >> the traders see it every day. the lack of participation means less business for them. they want to figure out a way to get people more interested in equities as well. again, without the confidence, without the job growth, i don't see it coming back in a dramatic way. i see people desperately putting money into high-yield bond funds and let's hope that holds up. they trade like stock funds. >> absolutely. to all of you, great debate. thank you very much for your input. >> thank you. coming up next, who said cats can't fly?
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